Yesterday's List of High Yield Opportunities

Yesterday's list of high yield opportunities should be known as the Credit Bubble Stocks kiss of death list.

The earliest maturing name on yesterday's list of high yield opportunities filed for bankruptcy this morning! That was the Trailer Bridge 9.25s of 2011, which had been trading at 76. The stock was down 50 percent and is down to a negligible $2 million market cap.

The next name was Dune Energy, which too is down to a negligible market cap. On Monday, it announced an exchange offer for its $300 million in 10.5% Senior Secured Notes due 2012 in exchange for: 251 million shares of common stock, plus 250,000 shares of Preferred Stock (which will automatically convert into an aggregate of approximately 3.537 billion shares of common stock when the restructuring transactions are completed), and at the company's option, either (a) $50 million of new Floating Rate Senior Secured Notes due 2016 or (b) an aggregate cash payment of $50 million. The bonds seem to be unchanged from the high 50s.

Third on the list was FiberTower. This morning the company announced that it had elected not to make the $1.3 million semi-annual interest payment due on its 9.00% Convertible Senior Secured Notes Due 2012 (which had been trading at 54). The company also announced reduced that it reduced its workforce approximately 40%, and has halted all capital expenditures. The bond traded down about 8 points but the stock was down 70 percent!